Aluminum Pulls Back from Record Rally, Holds Above $3,600

Key Moments

Spot Aluminium Retreats After Previous Day’s Record Surge

Following a record growth rate in the prior session, aluminium prices on the London Metal Exchange moved lower overnight on Tuesday, April 14, though they continued to trade above USD 3,600 per tonne.

The LME aluminium cash bid price decreased by USD 41 per tonne to USD 3,624 per tonne. The corresponding cash offer price declined by USD 40.5 per tonne, landing at USD 3,625 per tonne.

3-Month Contracts See Modest Softening

Price adjustments in LME aluminium 3-month contracts were more moderate. Both the 3-month bid and offer prices slipped by USD 5 per tonne, settling at USD 3,565 per tonne and USD 3,566 per tonne, respectively.

Further out on the curve, Dec-27 aluminium prices ended at USD 3,017 per tonne on the bid side and USD 3,022 per tonne on the offer side as of April 14, reflecting an increase of 1 per cent.

Reference Price Movement

The LME aluminium 3-month reference price was reported at USD 3,563 per tonne. This represented a decline of USD 44.54 per tonne, or 1.23 per cent, from the prior level of USD 3,607.54 per tonne.

Stocks Slide Below 400,000 Tonnes Amid Supply Constraints

LME aluminium opening inventories continued to fall and moved below the 400,000-tonne threshold. The opening stock was recorded at 397,100 tonnes.

Live Warrants stood at 355,575 tonnes, while Cancelled Warrants totaled 40,400 tonnes.

According to the report, ongoing global supply chain disruptions due to the Strait of Hormuz blockage, combined with rising demand, have contributed to reduced LME aluminium stocks and elevated prices and contract levels.